Dáil Éireann Debate, Thursday - 6 July 2023
19. Deputy Peadar Tóibín asked the Minister for Housing, Local Government and Heritage if he will provide an update on the local authority home loan scheme which enables successful applicants to borrow up to 90% of the market value of the property; if he will detail the number of people who have applied for the scheme; and the number who have been successful. [32083/23]
View answerSupporting home ownership is a key objective of Housing for All, under which the Local Authority Home Loan was established and which launched on 4 January 2022 with annual funding of €250 million.
This is a Government backed mortgage for those who cannot get sufficient funding from commercial banks to purchase or build a home. The Loan can provide up to 90% of the value of a property and is available to first buyers and those under the Fresh Start principle. It can be used for both new and second-hand homes, as well as self-builds.
In March Minister O'Brien announced significant changes to the house price and income limits which apply in the Local Authority Home Loan, which have resulted in more people being eligible to apply.
The house price ceilings were increased and range from €275,000 in areas like Longford and Monaghan, up as far as €360,000 in Dublin, Wicklow and Kildare.
Income limits were also increased for all applicants, up to €85,000 for joint applications or €70,000 for a single applicant. The increase for single applicants was particularly necessary to address the ability of single persons to access homeownership.
Combined with the predecessor Rebuilding Ireland Home Loan, 3,169 households have borrowed €524m between February 2018 and September 2022.
The Housing Agency has assessed 707 valid applications (for both Rebuilding Ireland Home Loans and Local Authority Home Loans) in 2023 to date. Of these, 281 were recommended for approval to the local authorities.
